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Switch on your savings with an online account

Switch on your savings with an online account

Category: Savings

Updated: 21/09/2010
First Published: 21/09/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The internet has changed the face of traditional banking, with the status of our accounts, loans and cards accessible at the touch of a button.

For many, the days where you had to troop down to the high street just to check the balance of a current account are gone.

It is not just day-to-day banking that has benefited from the online revolution though, with the number of internet savings accounts significantly increasing in recent years.

There are a myriad of online savings accounts, especially in the short term market and instant access accounts.

And with the base rate of interest possibly increasing in the next six to 12 months, such an account could be ideal in giving your savings a short, sharp shock.

Tying in for four or five years during a period that the base rate could rise markedly may not appeal quite so much.

If you're saving for an event in 2011, such as beginning a university course, a holiday or perhaps a wedding, an online account could suit you down to the ground.

If you're keen on building up a tidy savings nest egg, but would like to have access to your funds whenever it takes your fancy, then the isaver from Intelligent Finance could be worth your consideration.

The account offers a variable rate of 2.49% and there are no bonus periods or withdrawal restrictions to contend with.

Customers can top up their savings whenever they choose and the product can be opened with deposits of as little as £1, although savers will have to keep an eye on the rate, which can move up or down.

If you're comfortable with a bonus period as part of your savings account, the Tesco Internet Saver offers a rate of up to 2.60%.

The interest includes a 1.35% bonus on balances up to £1 million, with the rate reverting to 1.25% at the end of 12 months, so it would be advisable to access your options at the end of the period to make sure the product is still competitive.

Savers can make withdrawals without penalty from the Tesco Internet Saver.

A good option for those who would like to boost their earnings with monthly interest from their online savings account is the Chelsea e-Saver Reward.

The account pays interest of 2.57% for every month that funds are not withdrawn, while savers can take money from the product every April and interest will still be earned.

This account could be ideal if you don't dip into your savings too often but would like the comfort of easy access should you require it.

If none of these accounts quite tick the boxes for you, you can check out the full range of savings accounts, whether they be long term, short term, variable or fixed, at the Moneyfacts.co.uk Best Buy tables.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.